When looking to liquidate a company with no money, many owners are uncertain of the processes involved. In this article, we will discuss the steps for successfully concluding a company when assets are insufficient to fund the liquidation process, and how to personally raise the funds to do so.

How to Liquidate a Company with No Money?

When a company does not have adequate assets to fund its liquidation, this is known as a no-asset liquidation. Unfortunately, it is not possible to liquidate a company for free, as a licensed insolvency practitioner must be employed to manage the process and their services are chargeable. However, there are ways to raise the funds needed to liquidate the company without relying on the company’s assets.

Raising Funds via Personal Possessions and Assets

The most common way to raise the funds needed to liquidate a company with no money is to sell personal possessions and assets. This could include selling items of value such as cars, jewelry, furniture, or a second home. It may also involve taking out a loan from a friend or family member, or leveraging a credit card if possible.

Creditor Voluntary Liquidation (CVL)

The most commonly used process for concluding an insolvent limited company is a creditor voluntary liquidation (CVL). This is where the directors of a company decide to place the business into liquidation and appoint an insolvency practitioner to manage the process. All unsecured debts will be written off and the company’s assets will be sold off to pay the creditors.

Making a List of Tangible Assets

When a company is placed into a voluntary liquidation, the insolvency practitioner will need to make a list of the tangible assets owned by the company, as well as any money owed to the business in the form of rent, security deposits from tenants, or any other funds. This list will be used to help raise funds to pay for the liquidation process.

Liquidating a company with no money can be a difficult process, but it is possible to do so by selling personal possessions and assets or by taking out a loan. If your company is insolvent, you can place it into a Creditor Voluntary Liquidation (CVL) which will write off all unsecured debts, and the assets can be sold off to pay creditors. An insolvency practitioner will need to make a list of tangible assets and money owed to the company in order to help raise funds for the liquidation process.

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What occurs if you are not able to pay off your debts in full?

Is it possible to dissolve a company that has outstanding debts?

You can bring a company with outstanding debts to an end using a Creditors’ Voluntary Liquidation (CVL) insolvency process. This process will attempt to repay creditors as much as is practicable.

Is it possible to shut down a business that has no resources?

The process of shutting down a business with no assets starts with the company approving a dissolution resolution which must receive the approval of at least 75% of all the shareholders in terms of value.

Is it possible to dissolve a company of your own accord?

Voluntary liquidation is when the shareholders of a company decide to close the business and appoint a licensed insolvency practitioner to manage the process. This type of liquidation is divided into two categories, members’ voluntary liquidation and creditors’ voluntary liquidation.